Economics and Innovation

Changes with far-reaching economic implications are happening before our eyes nowadays. An accelerating process of digitalisation of the economy and the working world is under way, and the rapid rise of Asian economies, and especially the Chinese economy, is creating tensions in terms of international trade and security. It is worrying how often current debates in Western industrialised nations - including in Europe - are characterised by self-doubt regarding market democracy models.

The Konrad Adenauer Stiftung attaches importance to observing and analysing economic developments and challenges and global innovations, in order to help shape German policy with its advice.

The Economy and Innovation department thus provides policy recommendations for both a national and a European economic and innovation policy, which is distinguished by a solid conception of how to achieve future prosperity and offers responses to urgent questions: What products, services and business models will, in the future, help to create prosperity in Germany and Europe? What regulatory framework, what incentives and what ethical guard rails are needed to promote innovation and thus increase our competitiveness? How does European economic policy provide an overarching framework for the 27 member states and what are the priorities with respect to international partners?

The Economy and Innovation department offers suggestions on how the economic dynamism of Germany and Europe can be preserved while being made compatible with crucial ecological requirements. This gives rise to blueprints for a future combining the power of the market economy and the wealth of people’s ideas with cautious public policy.

We are convinced that the social market economy has a future. Its principles - freedom, individual responsibility, competition, the performance principle and social redistribution - have proven themselves in the long run and are the basis for Germany’s current economic situation. It is an economic system that will allow us to shape imminent processes of adjustment in a transformative way, which is open to different solutions, and to tackle challenges resulting from systemic competition with confidence. This is the background to the Konrad Adenauer Stiftung’s “Social Market Economy” prize, which is awarded annually and is housed in the Economy and Innovation department.